Commercial Strata Centre with Difficult Tenancy, QLD

A small commercial strata centre in coastal Queensland with five units and multiple tenants contacted us after their existing insurer dramatically increased the premium and excess at renewal.

The cause was a single difficult tenancy - a tobacconist. Tobacconist tenancies are among the hardest occupancy types in commercial property. The fire risk profile and stock value make most underwriters either decline outright or load premiums heavily.

The incumbent insurer had increased the premium by over 60% and bumped the excess from $2,000 to $20,000 - solely because of that one tenant. That was the trigger for the owners to look for alternatives.

We went to market systematically, submitting the risk across mainstream and specialist commercial underwriters. Each submission included the full tenancy schedule, building details, and fire protection information.

In parallel, we worked with the body corporate to address the underlying issue. The tobacconist tenant's lease was coming up for renewal, and there was an opportunity to resolve the tenancy rather than just accept the market's pricing.

Six underwriters declined to quote. Some cited the tobacconist directly. One required evidence the tobacconist lease was being terminated before they'd even consider the risk.

The previous insurer's renewal terms were the only fallback - and the $20,000 excess on a small shopping centre was disproportionate to the risk once the difficult tenancy was addressed.

After the difficult tenancy was resolved and the tenant vacated, we re-approached the market with an updated tenancy schedule.

This case shows that sometimes the solution isn't just finding the right insurer. It's helping the property owner address the underlying risk factor. Once the tobacconist tenancy was resolved, the building became a straightforward commercial strata risk again.